SWOT Analysis

SWOT Analysis

SWOT is the analysis of a companys

Strengths, Weaknesses, Opportunities,
and Threats.
Also called Internal-External Analysis and
the SWOT Matrix is sometimes called an
IE Matrix.

SWOT Analysis - STRENGTH

Strengths
What advantages does your idea have?
How does it serve the society better than anyone else?
How do you use unique or lowest-cost resources to your
idea that others cant?
What would be your strengths in the market ones this
idea is materialized?
What factors mean that you get the sale?
What is your innovations Unique Selling Proposition
(USP)?
Consider your strengths from both an internal perspective,
and from the point of view of your customers and
people in your prospective market.

SWOT Analysis - Weaknesses

Weaknesses
What is the further scope of
improvement?
What are the things that need to be
avoided?
What are people in your market likely to
see as weaknesses?
What factors lose you sales?

SWOT Analysis - Opportunities

Opportunities
What good opportunities can you spot in relation to the
innovative idea you have?
What interesting trends are you aware of?
Useful opportunities can come from such things as
Changes in technology and markets on both a broad
and narrow scale.
Changes in government policy related to your field.
Changes in social patterns, population profiles, lifestyle
changes, and so on.
Local events.

SWOT Analysis - Threats

Threats
What obstacles are likely to be faced?
What are your competitors doing?
Are quality standards or specifications for your job,
products or serv
Is changing technology threatening your position?
Could any of your weaknesses seriously threaten
your business?

PEST Analysis

PEST Analysis

A PEST analysis is an analysis of the external

macro-environment that affects all firms.
P.E.S.T. is an acronym for the Political, Economic,
Social, and Technological factors of the external
macro-environment.
Beyond the firm's control and sometimes present
themselves as threats.
Changes in the external environment also create new
opportunities.
Many macro-environmental factors are countryspecific and a PEST analysis will need to be
performed for all countries of interest.
The following are examples of some of the factors
that might be considered in a PEST analysis.

Political Analysis

Political stability
Risk of military invasion
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs
Favored trading partners
Anti-trust laws
Pricing regulations
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week
Mandatory employee benefits
Industrial safety regulations
Product labeling requirements

Economic Analysis

Type of economic system in countries of operation

Government intervention in the free market
Comparative advantages of host country
Exchange rates & stability of host country currency
Efficiency of financial markets
Infrastructure quality
Skill level of workforce
Labor costs
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest rates

Social Analysis

Demographics
Class structure
Education
Culture (gender roles, etc.)
Entrepreneurial spirit
Attitudes (health, environmental
consciousness, etc.)
Leisure interests

Technological Analysis

Recent technological developments

Technology's impact on product offering
Impact on cost structure
Impact on value chain structure
Rate of technological diffusion

Technological Analysis

The number of macro-environmental

factors is virtually unlimited. In practice,
the firm must prioritize and monitor those
factors that influence its industry. Even
so, it may be difficult to forecast future
trends with an acceptable level of
accuracy. In this regard, the firm may turn
to scenario planning techniques to deal
with high levels of uncertainty in
important macro-environmental
variables.